BANDAR SERI BEGAWAN – Brunei has signed its first new manufacturing sharing settlement in additional than a decade, marking a significant step in efforts to revitalise the nation’s upstream oil and fuel sector.
The trade regulator, Petroleum Authority of Brunei Darussalam (PA), awarded manufacturing rights in offshore Block C to EnQuest EP BV Ltd, an area subsidiary of London-based EnQuest PLC.
In an announcement, EnQuest mentioned it is going to initially be the only real operator of Block C with the intention to kind a 50/50 three way partnership firm with Brunei Vitality Exploration Sdn Bhd. As soon as the three way partnership is established, it is going to develop the Merpati, Meragi and Juragan fuel fields.
“This chance aligns with our technique to diversify our portfolio into fuel and broaden our presence in South East Asia,” mentioned EnQuest CEO Amjad Bseisu, citing the corporate’s current acquisition of belongings in Malaysia and Vietnam.
“Our established presence within the area and working experience constructed up in Malaysia and the UK North Sea can be invaluable in supporting this undertaking and future ventures in Brunei Darussalam.”
EnQuest is the second impartial oil and fuel firm to enter Brunei’s market after Hibiscus Petroleum acquired TotalEnergies’ controlling curiosity in offshore Block B final yr for $259 million.
The addition of EnQuest — a agency recognized for creating mature and late-life area operations — brings the variety of energetic oil and fuel operators within the nation to 4, underlining Brunei’s continued potential as a regional vitality participant.
“With extra new gamers getting into the trade, we will foster a extra aggressive and dynamic oil and fuel panorama,” mentioned PA Managing Director Shamir Salahudin. “This can present ample alternatives for artistic and modern collaboration amongst trade gamers.”
Pre-development actions for Block C are already underway, with first fuel manufacturing focused for 2029, he added.
The brand new settlement comes as PA’s rolls out its broader technique to revitalise Brunei’s exploration and manufacturing actions. Earlier this yr, the regulatory physique launched a licensing spherical for offshore Blocks A and D, which have a mixed space of over 4,000 sq. kilometers.
The oil and fuel sector stays the inspiration of Brunei’s financial system, contributing near half of the sultanate’s BND$20.6 billion GDP in 2024.
Final yr, the sector grew by 5.5%, with day by day manufacturing averaging 99,000 barrels of crude oil and 201,000 barrels of oil equal of pure fuel.
